EU starts probe into US biodiesel imports

Brussels - The European Commission has started anti-subsidy and anti-dumping investigations into imports of biodiesel from the US. The probe is in response to a complaint lodged by European biodiesel industry and evidence of subsidies to the US biodiesel sector, as well as dumping of biodiesel in the European market. Imports of biodiesel from the US have increased from about 7000 tonnes in 2005 to about 1 million tonnes in 2007.

The European Biodiesel Board, which represents the interests of a major proportion of EU producers of biodiesel, lodged official complaints with the Commission on 29 April. The EC said it is satisfied that the complaints "warrant further proceedings" and will provide provisional findings of its investigation by 13 March 2009.

"We have always said that the EU will not tolerate unfair trade practices, and will pursue vigorously any well founded complaint. The Commission will leave no stone unturned in these investigations and will act in accordance with the findings," said Peter Power, the EU spokesperson for Trade.

According to an EC statement, the subsidies "would include federal excise and income tax credits as well as a federal programme of grants to finance increased production capacity. Various subsidy programmes would also exist at state level. In regard to the anti-dumping complaint, the complainant has provided sufficient evidence of dumping of biodiesel on the EU market."

The EBB claims that US biodiesel imports have undermined prices and reduced market share held by the EU industry. Counter measures open to the EC include specific duties on the product in question, called countervailing duties in the case of subsidies, and anti-dumping duties, where dumping of imports s found to have occured .